The Verkhovna Rada approved the draft law on the establishment of the National Development Institution
On October 8, the Verkhovna Rada approved in the second reading draft law No. 11238 on the creation of the National Development Agency (NDA), which will become the Ukrainian counterpart of the German KfW (Kreditanstalt für Wiederaufbau – Credit Institution for Reconstruction). The initiative was supported by 280 people’s deputies, reported Chairman of the Committee of the Verkhovna Rada of Ukraine on Finance, Tax and Customs Policy Danylo Getmantsev.
“The National Development Institution (NDI) is a state specialized institution with the status of a “bank of banks” and a clear mandate to restore and structurally transform the economy. Its main mission is the implementation of lending programs for the reconstruction of the country, Hetmantsev explained.
The draft law is designed to solve problems with financing relocated businesses, enterprises in front-line regions, companies of internally displaced persons, as well as projects with an increased level of risk. The document also envisages the attraction of private investments for the recovery of the economy through various financial instruments, and the main emphasis is placed on supporting small and medium-sized enterprises, which have found themselves in difficult conditions, but have prospects for recovery and development.
The project takes into account the possibility of supporting other categories, including individuals who do not have access to financing on acceptable terms or are deprived of it due to the crisis, imperfection of market mechanisms or other factors.
The improvement of the tools of the Export Credit Agency (ECA), in particular the insurance and reinsurance of loans, including against military and political risks, related to investments in the creation of facilities and infrastructure, necessary for the development of the processing industry and the export of Ukrainian goods, works and services, is separately provided for. EKA will also be able to participate in state programs for insurance of military risks and in compensation mechanisms for losses caused as a result of hostilities.
We will remind you that on June 18, the Verkhovna Rada supported draft laws No. 11238 and No. 11239 on the creation of the NUR in the first reading, which received 233 votes. They were developed in cooperation with the Ministry of Finance and the National Bank of Ukraine. Draft Law No. 11238 defines the grounds for the creation of the National Research Council and the main areas of its activity, while No. 11239 regulates the specifics of taxation of funds received on an irrevocable basis from the institution.
